WORLD OIL PRICES (May 12-16, 2014 trading days)

Crude prices were mixed over the week’s trading days although daily postings were marginally higher than in previous week. Following are the reasons behind the price movements:

• Ongoing tensions between Russia and Ukraine. Oil prices are kept supported by worries on escalating conflict that could disrupt oil supplies. Russian Foreign Minister Sergei Lavrov was quoted as saying that the ongoing crisis in Ukraine was on the brink of a civil war.
• Drawdown in US crude oil. Prices climbed by about US$2 this week after a report of the USDOE showed a drawdown at the Cushing, Oklahoma terminal; this fuelled hopes that demand had picked up in the world's biggest oil consuming nation.

Specifically for products in Asia, Platts noted of gasoline price up-tick over the week in view of strong demand from the Middle East that continued to underpin the market. Buying interest in the Middle East drew barrels from India and reduced the flow of cargoes into the rest of Asia. However, supply in the Asian gasoline market remain ample as inventory levels grew in anticipation of an upswing in demand, as several refineries in the region undergo, or prepare to begin, maintenance. Demand from Vietnam, for instance, is expected to pick-up in the spot market as the country's sole refinery in Dung Quat shuts for maintenance on May 19 up to early July.

On the other hand, the Asian gasoil/diesel market was upbeat, spurred by expectations that the market is entering a peak demand season, despite high stockpiles still seen in the key trading hub of Singapore. Platts further noted that market observers expect inventories to be drawn down over the next few months as Saudi Arabia starts importing for summer and the Muslim holy month of Ramadan. Demand from Indonesia is also expected to be boosted during the period.

Overall, Dubai crude recovered this week by more than a dollar. Similarly, MOPS gasoline increased as well by about US$2.60/bbl together with diesel by about US$0.30/bbl.

FOREX: Week-on-week value of Peso appreciated by P 0.50 against the US dollar to P43.51, from P44.21, in the preceding week.

Other recommended reference sites:
(1) http://www.aip.com.au/pricing (2) http://www.med.govt.nz/ers/oil_pet/prices/prices.html

DOMESTIC OIL PRICES

Effective today, 20 May 2014, most of the oil companies implemented a decrease of P0.35/liter in the price of diesel and an increase of P0.60 in gasoline, which also reflected the increase in the price of bioethanol.

Diesel and gasoline have a year-to-date net decrease of P1.50/liter and P0.25/liter, respectively.

For more information, call the

Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: oilmonitor@doe.gov.ph
Website: http://www.doe.gov.ph